Shibarium transactions down 99% as Solana threatens Ethereum dominance

While Bitcoin’s (BTC) recent slump dragged the entire market down, Shiba Inu’s Shibarium took a massive hit.

The Ethereum-based layer2 network witnesses faded user activity as daily transactions plummet below 9K.

Notably, the significant dip in daily transactions on Shibarium comes amid increased competition. For instance, the recent memecoin craze saw Solana (SOL) outpacing Ethereum projects in active users.

Shibarium transactions plummet under 10K

Shibarium witnessed impressive adoption towards 2023 end and early in 2024. The network saw an influx of users, propelling daily transactions past 7 million in December last year.

Further, the layer2 network maintained over 1 million daily transactions (on average) even as usage faded into the new year.

Nonetheless, the platform sees a relentless dip in 24-hour transactions. The downside emerged on 10 March when the metric plummeted to a yearly low of 800K from 1 million.

While the figure jumped past 1 million, the upside was short-lived before a massive crash. On 16 March, Shibarium saw its daily transaction plunge from over 1 million to below 600K.

The drop continued to above 83,500 transactions during this publication.

SHIB price outlook

Shiba Inu endured notable declines as Bitcoin dropped from $73K to $61K. Investors reduce activities as bears dominate the crypto market, likely explaining the massive plunge in Shibarium daily transactions.

Thus, SHIB’s recovery might catalyze adoption resurgence for the layer2 platform. Nonetheless, projects such as Solana threaten Ethereum in active user dominance.